PUBLIC HEARING OF THE

BOARD OF WATER, ELECTRIC,

AND COMMUNICATIONS TRUSTEES

OF THE CITY OF MUSCATINE, IOWA

APRIL 28, 2015 - 5:28 P.M.

The

Board

of Trustees conducted

a public hearing

Muscatine

Power and

Water's

Administration/Operations

Building,

3205

Cedar Street, Muscatine, Iowa, on Tuesday, April

28, 2015,

5:28

p.m.

Chairperson Tracy McGinnis

called the meeting to order. Members of the Board were present as follows:

Trustees Warren Heidbreder, Steven Bradford, Susan Eversmeyer, and Tracy McGinnis. Trustee Doyle

Tubandt was absent due to previously scheduled travel plans.

Also

present were Sal LoBianco, General Manager of Muscatine Power and Water; Jerry Gowey, Board

Secretary;

Charles Potter, Muscatine Journal; Erika Cox, Brandy Olson, Tim Reed, Gage Huston, and

Brenda Christensen

of Muscatine Power and Water.

The purpose of the public hearing was to receive any citizens' comments regarding the A/O Roof

Replacement Phase 2 Project.

Mr. Gowey, Board Secretary, opened the public hearing at

5:28

p.m. to receive any citizens' comments

regarding the

A/O Roof Replacement Phase 2 Project.

Mr. Gowey stated that public hearing notice was published as required by the Code of Iowa and that no

written or oral comments were received regarding this project.

The following resolution was submitted:

RESOLUTION 15-07

WHEREAS, the Board of Water, Electric, and Communications Trustees of the City of Muscatine

Iowa has given tentative approval to plans and specifications for the A/O Roof Replacement

Phase 2 Project; and,

WHEREAS, bids have been received and there are no written or oral objections to proceeding

with these projects; now therefore,

BE IT RESOLVED, by the Board of Water, Electric, and Communications Trustees of the City of

Muscatine, Iowa, that the plans and specifications for the A/O Roof Replacement Phase 2 Project

be adopted.

Trustee Heidbreder moved, seconded by Trustee Bradford,

that the said resolution should be passed,

approved, and adopted this

28th

day of April

2015.

On roll call Trustees Heidbreder, Bradford, Eversmeyer

and McGinnis voted aye. Trustee Tubandt was absent. Voting nay, none.

Resolution carried.

5:29

m., the Secretary closed the public hearing for the A/O Roof Replacement Phase 2 Project.

BOARD OF WATER, ELECTRIC, AND

COMMUNICATIONS TRUSTEES OF

CITY OF MUSCATINE, IOWA

cnP4

Jerry Gowey

Board Secretary

ITEM 12B

OFFICIAL PROCEEDINGS OF THE

BOARD OF WATER, ELECTRIC,

AND COMMUNICATIONS TRUSTEES

OF THE CITY OF MUSCATINE, IOWA

APRIL 28, 2015- 5:30 P.M.

The Board

of Trustees met in regular session at Muscatine Power and Water's

Administration/Operations Building,

3205 Cedar Street, Muscatine, Iowa, on Tuesday, April

28,

2015, at 5:30 p.m.

Chairperson Tracy McGinnis called the meeting to order. Members of the Board were

present

as follows: Trustees Warren Heidbreder, Steven Bradford, Susan Eversmeyer, and

Tracy McGinnis. Trustee Doyle Tubandt was absent due

to previously scheduled travel

plans.

Also present were

Sal LoBianco, General Manager of Muscatine Power and Water; Jerry

Gowey, Board Secretary;

Charles Potter, Muscatine Journal; Erika Cox, Brandy Olson, Tim

Reed, Gage Huston, and Brenda Christensen of Muscatine Power and Water (MP&W).

Chairperson McGinnis asked if there was anyone in attendance who wished to make any

public comments. There were no public comments.

The minutes

of the March 31, 2015, regular meeting were presented as previously sub-

mitted to all Board members in written form. Date corrections were noted. Trustee

Heidbreder moved, seconded by Trustee Eversmeyer,

that the March 31, 2015, meeting

minutes

be approved as corrected. All Trustees present voted aye. Motion carried. Meeting

minutes

of the March 24, 2015, and March 31, 2015, Audit/Finance Committee Meetings

were received and placed on file.

The list

of expenditures and transactions for March 2015 was presented as previously sub-

mitted to all Board members in written form. After review and discussion of the

expenditures, Trustee Heidbreder moved, seconded by Trustee Bradford,

to ratify payment

of $8,851,536.15 for the Electric Utility, $461,866.19 for the Water Utility, and

$1,008,160.11 for the Communications Utility for a cumulative total of $10,321,562.45. All

Trustees present voted aye. Motion carried.

Mr. LoBianco reviewed

the previously submitted memorandum to all Board members

regarding the receipt and evaluation

of bids for the A/O Center Roof Replacement Phase 2

Project; this project was approved

with the 2015 Operating Budget to replace roof section

A and the translucent

roof panels over the high tech hallway. Specifications pertaining to

the A/O Roof Replacement Phase 2 Project were mailed to seven (7) potential bidders. A

total of four (4) bids were received, opened publicly, and read aloud on April 9, 2015, at

3:00 p.m. Three (3) bidders attended the opening. The total approved expenditure for this

project

is $190,000.00; with a published estimate of $117,000.00 for the roof replacement

portion

of the project. MP&W Management reviewed the bids and established

conformance

to the specifications; it is recommended that the low bidder, Riddell Roofing,

Inc., of Aledo, Illinois, be awarded the contract using the 50 mil thickness option for the

Board Minutes

April 28,

2015

Page

2 of5

A/O Center Roof Replacement Phase

Project for the total contract price of

$131,120.00

After review of the project, the following resolution was submitted:

RESOLUTION 15-08

WHEREAS, it appears in a written report from Muscatine Power and Water

Management

that the bid for the A/0 Center Roof Replacement Phase 2 Project, as

submitted by Riddell Roofing, Inc., of Aledo, Illinois, in the amount of

$131,120.00,

was the best and lowest bid received; now therefore,

BE IT RESOLVED by the Board of Water, Electric, and Communications Trustees of

the City of Muscatine, Iowa, that the proposal from Riddell Roofing, Inc., of Aledo,

Illinois,

in the amount of

$131,120.00,

for the A/O Center Roof Replacement Phase

2 Project was hereby accepted as submitted; and,

BE IT FURTHER RESOLVED, that the General Manager and Secretary of the Board

were hereby authorized, empowered,

and directed to execute a contract in the

sum approved by

the Board of Water, Electric, and Communications Trustees.

Trustee Eversmeyer moved, seconded by Trustee Heidbreder,

that the said resolution

should be passed, approved, and adopted this

28th

day of April

2015.

On roll call Trustees

Heidbreder, Bradford, Eversmeyer, and McGinnis voted aye. Trustee Tubandt

was absent

Voting nay, none. Resolution carried.

The next agenda item was a recommendation to tentatively approve plans and

specifications of the Units 8 and 9 ACI (Activated Carbon Injection) Installation Projects and

set dates for the receipt of bids and to conduct a public hearing. Mr. LoBianco reviewed the

previously submitted memorandum

to all Board members explaining that approved with

the

2013

Operating Budget were two projects with a total combined expenditure of

$2,800,000.00

to reduce mercury emissions from Unit

and Unit 9 to comply with the U.S.

EPA Mercury and Air Toxics Standards (MATS) rule. Purchase orders were executed earlier

this year for the procurement of ACI equipment for use on MP&W's Units 8 and 9 and

detailed specifications have

now been developed for the installation portion of the project,

with an estimated total expenditure of

$1,300,000.00.

Trustee Heidbreder asked about the

process and Mr. Huston explained the

ACI process. Management is recommending

approval and issuance of plans and specifications for performing the equipment installation

and that dates and times be established for a Competitive Bid. After discussion, the

following resolution was submitted:

RESOLUTION 15-09

WHEREAS, plans and specifications have been prepared for the Units 8 and 9 ACI

(Activated Carbon Injection) Installation Projects; and,

WHEREAS, said proposed plans and specifications and proposed form of contract

were now on file

with the Secretary of the Board and the Board finds the same

were in substantial conformity

with the requirements necessary to carry out said

Board Minutes

April 28, 2015

Page 3 ofS

plans; now therefore, Units 8 and 9 ACI (Activated Carbon Injection) Installation

Projects

plans and specifications were tentatively approved; and,

BE IT FURTHER RESOLVED, that the date of May

21, 2015,

3:00

p.m., was hereby

set

for receipt of bids on said project at which time the Board's duly appointed

representative was hereby authorized, empowered, and directed

to receive, open

and read

aloud all sealed bids, and receive and record all oral bids, and keep a

written record of said proceedings and notice to bidders be published not less than

four (4) days nor more than forty-five (45) days prior to said date for receipt of bids

all as required by the Code of Iowa; and,

BE IT FURTHER RESOLVED, that the hearing on said plans and specifications and

proposed form of contract as provided by statute, be held in the office of the Board

of Water, Electric, and Communications Trustees of the City of Muscatine, Iowa, on

June

30, 2015,

5:28

p.m

, and notice to bidders be published not less than four

(4) days nor more than twenty

(20)

days prior to said hearing all as required by the

Code of Iowa.

Trustee Heidbreder moved, seconded by Trustee Eversmeyer, that the said resolution

should

be passed, approved, and adopted this

28th

day of April

2015.

On roll call Trustees

Heidbreder, Bradford, Eversmeyer and McGinnis voted

aye. Trustee Tubandt was absent.

Voting nay, none. Resolution carried.

Mr. LoBianco stated

that the next item on the agenda was to approve an electric rate

adjustment for

2015

and

2016.

He reminded the Board that at the March Board of Trustees

meeting,

MP&W Management, along with Russ Hissom of Baker Tilly Virchow Krause, LLP

(BT), presented the results of the Cost of Service/Rate Design Study with a

recommendation

that a revenue adjustment of four percent (4%) be implemented

effective August

1, 2015

and August 1,

2016,

for Electric Utility customers. After discussion

and review, the

following resolution was submitted:

RESOLUTION 15-10

WHEREAS, certain studies have been made of the financial condition of the Electric

Utility

and presented to the Board of Water, Electric, and Communications Trustees

for its consideration; and,

WHEREAS, the Board has reviewed these studies and determined that revenue

increases are necessary

to keep the Electric Utility in sound financial condition; now

therefore,

BE IT RESOLVED, by the Board of Water, Electric, and Communications Trustees of

the City of Muscatine, Iowa that the electric revenue be increased by four percent

(4%) effective with electric usage starting August 1,

2015

and August 1,

2016;

and,

Board Minutes

April 28

2015

Page

4 ofS

BE IT FURTHER RESOLVED, that said increases be effected by adoption of the rates

proposed by Baker

Tilly Virchow Krause, LLP (BT) Cost of Service/Rate Design Study

dated March

2015;

and,

BE IT FURTHER RESOLVED, that proper notice be given to contract consumers in

accordance

with the terms of the contracts.

Trustee Bradford moved, seconded by Trustee Heidbreder,

that the said resolution should

be passed, approved, and adopted this

28th

day of April

2015.

On roll call Trustees

Heidbreder, Bradford, Eversmeyer

and McGinnis voted aye. Trustee Tubandt was absent.

Voting nay, none

Resolution carried

Mr. LoBianco stated

that the

2014

Muscatine Power and Water Annual Report has been

completed and previously distributed

to each of the Board members. He continued that

the Board had also received the

2014

Annual Reports Highlights document prior to the

meeting

that will be distributed to all customers and employees. Mr. LoBianco said that for

the first time, the annual report was developed by MP&W's Marketing Department and

that once again Sycamore Printing produced the annual report as part of the second year

of a three year publication contract. Staff at Sycamore Printing were very good to work

with,

met all deadlines, and produced a quality report. The Board complimented all Staff on

the

2014

Annual Report. After additional discussion, Trustee Bradford moved, seconded by

Trustee Eversmeyer,

that the

2014

Annual Report be received and placed on file as

submitted. All Trustees present voted aye. Motion carried.

In the General Manager's report, Mr: LoBianco reviewed his previously submitted memo-

randum

that included an invitation to Board members to attend the

2015

APPA National

Conference

and Public Power Expo that will be held in Minneapolis in June.

The

YTD and March Financial Operating Statements and Balance Sheets and Quarterly

Investment

Report were presented as previously submitted to all Board members in

written form. Mr. LoBianco stated that financials would be covered in the Key Performance

Indicators

presentation. Trustee Heidbreder moved, seconded by Trustee Eversmeyer, to

receive and

place on file the YTD and March Financial Operating Statements and Balance

Sheets

for the Water, Electric, and Communications Utilities and the Quarterly Investment

Report.

All Trustees present voted aye. Motion carried.

The Quarterly Project Status Report and Variance Analysis were presented as previously

submitted

to all Board members in written form. Trustee Heidbreder moved, seconded by

Trustee Bradford,

to receive and place on file the Quarterly Project Status Report and

Variance Analysis. All Trustees present voted aye. Motion carried.

The Critical Issues and Key Performance Indicators for the Water, Electric, and Communi-

cations Utilities were previously submitted to all Board members in written format. Mr.

LoBianco asked each

Critical Issue leader to review the status of their Critical Issue and

stated that Mr. Gowey would review the Key Performance Indicators

After review and

discussion, Trustee Heidbreder moved, seconded by Trustee Bradford,

to receive and place

Board Minutes

April 28

2015

Page 5 of5

on file the First Quarter 2015 Critical Issues and Key Performance Indicators for the Water,

Electric, and Communications

Utilities. All Trustees present voted aye. Motion carried.

The Competitive Quotes

for Public Improvements Report was presented as previously

submitted

to all Board members in written form. After review and discussion, Trustee

Bradford moved, seconded by Trustee Eversmeyer,

to receive and place on file the

Competitive Quotes

for Public Improvements Report. All Trustees present voted aye.

Motion carried.

The March Departmental Reports were presented as previously submitted to all Board

members

in written form. Trustee Heidbreder moved, seconded by Trustee Eversmeyer, to

receive and place on file the March departmental reports. All Trustees present voted aye.

Motion carried.

The meeting was adjourned at 6:40 p.m.

BOARD OF WATER, ELECTRIC, AND

COMMUNICATIONS TRUSTEES OF THE

CITY OF MUSCATINE, IOWA

~f,~

Jerry Gowey

Board Secretary